The much-anticipated Desco Infratech IPO has officially opened for subscriptions today, March 24, and will continue through March 26. Priced between ₹147 and ₹150 per equity share, this IPO offers a face value of ₹10. Investors looking to join in can place bids for a minimum of 1,000 equity shares, with additional shares available in multiples of 1,000 thereafter.

About Desco Infratech Limited

Established in January 2011, Desco Infratech Limited is a dynamic player in the infrastructure sector, focusing on critical areas such as Engineering, Planning, and Construction. The company specializes in sectors like City Gas Distribution, Renewable Energy, Water, and Power.

• Key Areas of Expertise:
  • City Gas Distribution (CGD)
  • Power Transmission
  • Water Supply Systems
  • Renewable Energy Solutions

Desco Infratech has made significant strides in constructing and developing essential infrastructure, including pipelines, roads, and bridges. Their commitment to sustainable and efficient infrastructure development has earned them a strong reputation in the industry.

Expanding Reach and Infrastructure Services

The company has extended its operations to over 55 cities across 14 states, having successfully installed more than 4,000 kilometers of Medium-Density Polyethylene (MDPE) pipelines. Desco Infratech has connected over 200,000 residential, industrial, and commercial clients to piped natural gas.

Their service offerings also include:

• Designing and constructing water distribution networks
• Developing open wells and sump wells
• Installing overhead tanks

Subscription Status and Market Performance

As of the first day of the IPO, the subscription status for Desco Infratech stands at 62%. The retail section has seen a 67% subscription rate, while the Non-Institutional Investors (NII) portion has been subscribed 1.29 times. At 11:39 IST, bids for approximately 841,000 shares were received against the 1,366,000 shares available.

Financial Insights and Future Plans

The Desco Infratech IPO consists of a fresh issue of 2,050,000 equity shares, totaling around ₹30.75 crore. Notably, there is no offer for sale (OFS) component included in this IPO. The funds raised will be allocated towards:

• Establishing a corporate office in Surat, Gujarat
• Acquiring new machinery
• Supporting working capital requirements
• Addressing general corporate expenses

Market Anticipation and Grey Market Premium

As of today, the Grey Market Premium (GMP) for Desco Infratech shares is reported at +20, indicating a premium of ₹20 in the grey market. This suggests a strong market interest, with the anticipated listing price projected to reach ₹170—a 13.33% increase from the upper end of the IPO price band.

The fluctuations in the grey market over the past week reflect a positive trend, indicating investor interest and confidence in Desco Infratech’s future.

Final Thoughts

As the subscription period for the Desco Infratech IPO unfolds, investors are keenly monitoring the company’s performance and market reception. With a robust portfolio and strategic growth plans, Desco Infratech is poised to make a significant impact in the infrastructure sector.

For more updates on upcoming IPOs and market trends, stay tuned!